Sotheby's to Sell 50 Works From $300 Million Collection Pledged to Seattle University

Sotheby's begins selling roughly 50 works from Richard "Dick" Hedreen's collection this month, with estimates of $109 million to $158 million — art once destined for a planned museum at Seattle University.

The Seattle real estate developer and philanthropist, 91, pledged his collection to the university in late 2023. A 2024 university news release billed it as "the largest single gift of any kind ever made to a university in Washington state and the largest gift of art ever made to a U.S. university," valued at $300 million, alongside $25 million in seed funding. Instead of an outright gift, the collection was a pledge. And some of it was already collateral on a loan.

Why is the art going to auction?

The sale settles an outstanding loan balance taken out years earlier against the art, not a fundraising effort for the museum. Public records show an LLC associated with Hedreen first offered works by Francis Bacon, Willem de Kooning and David Hockney as collateral with Goldman Sachs in 2012. In 2025, a Bank of America loan replaced it, with approximately 44 major artworks serving as collateral, including pieces by Roy Lichtenstein, Georg Pencz, Cecily Brown and Joan Mitchell.

At least 18 of the works heading to Sotheby's block are loan collateral, including:

• Lichtenstein's "Reflections on 'Painter and Model'" — estimated at $20–$30 million
• de Kooning's "Water…Soft Banks and a Window (Untitled VIII)" — $20–$30 million
• Sam Francis' "Towards Disappearance" — $15–$20 million

R.C. Hedreen Co. President David Thyer confirmed the sale relates to financial pressures in the hotel and real estate markets. The firm owns the Grand Hyatt and other downtown Seattle hotels. Hotel income, he said, cannot repay the loan "in any reasonably foreseeable time frame."

Richard Hedreen's son, Guy, said the pledge agreement explicitly notes the art collateral. "Mr. Hedreen's commitment to Seattle University has not changed," he told The Seattle Times. His father is selling works, Guy said, "by removing a debt that prevents him from translating his pledge intentions into an outright gift."

The 2024 release also stated the gift included "$25 million in seed funding to develop the museum." In reality, that seed funding was a de Kooning painting — estimated at $25 million in 2024, it fetched $17 million in a private sale.

What does this change for Seattle University?

After the auction, roughly 350 pieces remain, and Richard Hedreen has committed to gifting those to the university, according to school and family representatives. No timeline has been communicated, and neither party confirmed whether the remaining works have been appraised.

Guy Hedreen said his father and university representatives jointly selected which works to sell, keeping the remaining collection "temporally and geographically diverse." Works slated for the school include Amy Sherald's "The Make Believer," Rashid Johnson's "Seascape 'Jitter Bug'" and pieces by Thomas Gainsborough and Pontormo.

"We continue to believe the collection presents a significant opportunity for the university, community and our broader vision for the arts," said Scott K. McClellan, vice president for university affairs. He said it had been "reasonable" to expect the loan repaid by 2028, when the museum was to be completed.

The pledge's flexibility may surprise donors and institutions, but it is legally routine. "Pledges or promised gifts can be amended and can change over time," said Andrea Perez, a partner at Carrington Coleman who heads its art law section. "It is common for donors to change their minds (or) for circumstances to change." Until a deed of gift is signed — and in some jurisdictions the property physically transferred — a donation may not be finalized, she said. Guy Hedreen said the agreement "explicitly acknowledges that it does not limit Mr. Hedreen's ability to buy and sell art" before the gift becomes official.

What comes next for the museum?

Construction on the Seattle University Museum of Art, designed by architect Tom Kundig, was originally to begin this past summer and has slipped to 2027 as permitting continues. Plans call for galleries, an event space, classrooms and a cafe housing the permanent Hedreen collection.

The school has raised $55 million toward the approximately $65 million project, including the $17 million de Kooning proceeds. "The sale helps provide clarity regarding the collection," McClellan said, adding that the university will share details on the collection and the project timeline once the final selection of works is confirmed after the auction.